With Making Tax Digital for VAT officially coming into force in April of last year, you will also have been aware that there was an exception which covered the first year only which gave you permission to use copy and paste as well as any other way of manually inputting data.
It is important to know that this exception will come to end from April 1st 2020, after this point a ‘Digital Link’ is needed to transfer information between the different systems that are part of the process in completing the VAT return.
What does this mean for you?
This change could ultimately impact on any customers that are on older systems (NAV 2015 or below), those that haven’t upgrade to include MTD functionality into their system or are part of a VAT Group and as a consequence need to combine different companies before making the submission of the VAT return.
You will find that the VAT Notice 700/22 provides a whole host of information about this, we also suggest that you refer to this crucial section in full, which explains that “all information must be transferred between software programs through a digital link for VAT periods commencing from 1 April 2020.”
Therefore, if you are currently using a ‘Bridging Solution’ then this could be fine to continue using providing the data is not copied and pasted.
Next Steps?
If you are a business looking to make sure that your ERP solution (Dynamics NAV/GP or Business Central) is ready to comply with the latest MTD change above then please get in touch with our team of MTD experts who can discuss your specific system needs via an MTD workshop and the actions that you need to take within your system to achieve compliance.
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